Sports Direct Founder Mike Ashley admitted that the company is "under investigation" by U.K. tax authority HMRC over allegations that "the company effectively paid staff less than the minimum wage," according to Pickard & Murray Brown of the FINANCIAL TIMES. Workers at the sportswear group's Derbyshire warehouse "had spent unpaid periods being searched while leaving the premises to prevent theft -- taking their average pay below the legal threshold." Ashley admitted to a committee of MPs that this "had occurred." Asked if the issue had "yet been resolved," he said, "I hope so." The "controversial billionaire" said that the group "had since increased the pay of workers to end the anomaly." Unite the Union Assistant General Secretary Steve Turner said that Sports Direct had agreed with HMRC to "give some backdated compensation to warehouse employees -- but not its thousands of temporary workers." The chain was previously accused by trade union officials of operating a "culture of fear" at its Derbyshire warehouse. Ashley conceded that his internal review had uncovered "unpleasant surprises" at the company's Derbyshire site (FT, 6/7).
